New charges for alleged textbook scammer

CAMDEN – A Franklin Township man is facing two new counts of mail fraud connected to an alleged scheme that targeted thousands of school systems with bogus payment demands.

Robert S. Armstrong, 44, appeared Friday afternoon on the new charges before U.S. Magistrate Karen M. Williams. He was taken into custody until a bail hearing on Monday.

Armstrong initially was arrested on Oct. 16 on one count of mail fraud and was released on bail. Since then, the government alleges he has collected payments mailed to a business that he set up as part of the scheme.

Williams on Tuesday denied a government motion to revoke his bail based on the new charges. She did bar him from visiting mail boxes used by that business and from collecting any mail.

The initial allegation is that Armstrong sought, and in some cases collected, payments for books from about 73,000 schools this year. The schools had neither ordered or received them, and officials say the books don't exist.

The U.S. Postal Service started investigating Armstrong in August based on complaints from a number of schools. The government since then has seized or identified for seizure more than $325,000 in bank accounts that Armstrong used.

Officials say Armstrong operated two businesses, both from his home. He used rented commercial mail boxes and a Post Office box to service them.

Officials with the Postal Service and United States Attorney's Office say Armstrong, after his release last week, collected payments at mail boxes set up as part of the scheme.

The first business was called Scholastic School Supply LLC. It used mail boxes in Sewell and in Las Vegas, Nevada.

Armstrong allegedly sent invoices to schools all over the country. All were asked to pay $647.50 for either a mathematics workbook or an English/language arts workbook.

The second business was called The Trend Publishing. It used a Post Office box in Malaga.

Armstrong allegedly asked for payments of $495 for an advertisement that supposedly was placed in a publication called "College Edition." That publication apparently does not exist.

According to officials, it was checks made out to The Trend that Armstrong collected since his release from custody.